ABSTRACT
Pricing is not only linked to demand, it is also linked to cost. The ticket prices to the opening ceremony of 2006 Commonwealth Games in Melbourne ranged from AUD 40 to AUD 500. Part of the explanation for the high prices is the result of scarce seats (the 92 000 maximum seating of the Melbourne Cricket Ground (MCG) combined with high demand. The other explanation is the very high cost of staging the opening ceremony, which was estimated to be around AUD 20 million. As a point of comparison the opening ceremony at Sydney 2000 was nearer AUD 30 million with ticket prices ranging from AUD 20 to AUD 850. So, the question arises as to what constitutes effective pricing, and what specific strategy might be used to ensure both appropriate levels of revenue and the recovery of costs, while at the same time enabling broad community access.
